AAPL: Sterne Agee Ups Estimates on Improved iPhone 5 Supply

By Tiernan Ray

Sterne Agee’s Shaw Wu this morning joins the chorus on the Street saying Apple’s (AAPL) iPhone 5 is looking a bit better this quarter given what appears to be more readily available supply.

Wu, who has a Buy rating on Apple shares and an $840 price target, raised his fiscal Q1 iPhone unit sales assumption to 47.3 million units from 46.5 million, above what he claims is consensus for 45 million to 46 million units, citing the closing of delivery times published by Apple to a span of two to four weeks from a prior three to four weeks, and “much better availability in AAPL’s retail stores, online store, as well as third-party partners.”

“From our understanding, this is despite still robust demand due to improving yields and thus better availability and profitability.”

Wu writes that improved supply is the reason Apple is planning to bring the phone to South Korea on December 7th, as well as to China and over 50 countries later this month.

The iPad mini, however, appears to be outstripping supply at this point: “In addition, iPad mini demand appears stronger than expected and our supplier checks indicate that that is the key reason why lead times remain at 2 weeks.”

Wu raised his Q1 estimate to $54.6 billion in revenue and $13.70 in profit per share from a prior $53.7 billion and $13.15, writing that improved iPhone yields should lead to better profit for the quarter.

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There are 15 comments

DECEMBER 4, 2012 10:27 A.M.

Peter wrote:

Tim Cook and Apple can go F themselves. This
stock is a complete joke and all the analysts
who continue to pound the table and raise
estimates and price targets, can pound this.
Apple is a stock that is heading into the
grave to join Steve. Why Cook is still there
is a complete mystery.

DECEMBER 4, 2012 10:40 A.M.

Casey Konstantín (aka Casey Serin) wrote:

Aloha home gamers! Sweeeeet aapl move today, luvin my 99 Days to Retire with Apple PUTs. Face it Bull Clowns, this market is destined to decline, there is nothing you can do at home to change that. The SMART money has spoken, and AAPL is going to $400 by Christmas.

Off to enjoy a banana (or two!) and watch the waves!

DECEMBER 4, 2012 11:06 A.M.

Anonymous wrote:

I love how these clowns completely bombed AAPL when it was at the ~505 level. I'm sure I wasn't the only one to make a whole lot of money since then.

I always dismissed the idea that Samsung or other competitors would actually hire someone to trash Apple. But it definitely seems like it now. No one in their right mind would take the time to trash a company that creatively (and poetically) just for the fun of it.

Looks like I'm buying some shares again.

DECEMBER 4, 2012 11:11 A.M.

Casey Konstantín (aka Casey Serin) wrote:

Face it Bulls. At 13 times earning, more like 6 times forward earnings ex-cash, AAPL is a failed stock. Its time has past and SMART money knows it. What is the point of buying into this VALUE TRAP?

FISCAL CLIFF 2012... run for the hills!

DECEMBER 4, 2012 11:13 A.M.

Bill wrote:

Glad Shaw joined the chorus, now he can sing along with the rest of them " Sweet Dreams Apple"!

DECEMBER 4, 2012 11:19 A.M.

Sally wrote:

Stock falling apart and Timmy doing interviews with Brian Williams. Perhaps he can explain how he took the
number 1 company in the world 3 months ago and ruined it.

DECEMBER 4, 2012 11:32 A.M.

xiefrank wrote:

tim cook sold his stock to your stupid small guy to save the tax

DECEMBER 4, 2012 11:43 A.M.

Dan Tanna wrote:

Everything Shaw Wu says should be automatically ignored. He has a terrible track record.

DECEMBER 4, 2012 11:48 A.M.

Dan Tanna wrote:

I hasten to add that chorus of feeble-minded day traders who post here should also be flatly ignored.

DECEMBER 4, 2012 12:24 P.M.

Joe wrote:

Stock has and continues to take a beating while
Tim Cook prepares for TV interview this week
to discuss how he is running the company
into the ground.

DECEMBER 4, 2012 12:37 P.M.

freddysrevng wrote:

Shaw Woo Woo (distant cousin from another mother of the famous Wrigley Field peanut vendor Ronnie Woo Woo) has lived in the "iTard Distortion Field" for so long that he is unable to grasp, the fact that, between Samsung Galaxy S3 (my current phone) and the upcoming BB 10 - iPhone 5 is DEAD.

The reason why there is "supply" is because the purchasing of iPhone 5 is weak.

In addition, good to see them getting all Chris Matthews "up the leg tingly" about mini Pad purchases because these purchases are cannibalizing iPad sales like Moochelle on a lobster (paid for by taxpayers, of course).

Definition of Insanity.. Getting Crushed buying AAPL Calls each day and expecting some different to happen tomorrow.

DECEMBER 4, 2012 1:49 P.M.

PofView wrote:

2013 could be the year of Humble AAPL pie.

DECEMBER 4, 2012 9:42 P.M.

Anonymous wrote:

WOW. IT'S UNBELIEVABLE HOW CNBC HAS BEEN TRASHING AAPL ON THE STATION. I THINK THEY ARE A BUNCH OF MORON'S BECAUSE I SEE AAPL PRODUCTS FLYING OFF THE SHELVES, I SEE 1100 CUSTOMERS PER HOUR AT THE APPLE RETAIL STORES, I SEE APPLE IPHONE SALES OF 52 MILLION THIS QUARTER, I SEE 40 MILLION IPAD MINI SALES, I SEE 25 MILLION IPAD3 AND 4 SALES THIS QUARTER, AND IM GUESSING THAT IMACS, IPODS, ITUNES, & APP STORE AND APPLE TV WILL DO OK. WHAT ARE THOSE GUYS AND ANALYSTS NOT SEEING THAT I AM SEEING?

1.) ARE THEY FORGETTING AAPL PAYS A NICE DIVIDEND, AND THE FACT THAT AAPL SHOULD BE ABLE TO INCREASE IT EVERY YEAR WITHOUT ANY TROUBLE?
2.) ARE THEY FORGETTING AAPL HAS A 5 BILLION BUYBACK THIS YEAR, AND ANOTHER 5 BILLION BUYBACK FOR 2013?
3.) ARE THEY FORGETTING TO ADD UP ALL THE SALES AAPL WILL COLLECT FROM SELLING THEIR PRODUCTS IN 50 MORE COUNTRIES STARTING NEXT WEEK?
4.) ARE THEY FORGETTING THE "SHORT INTEREST" IN AAPL ?
5.) FINALLY, AND MOST IMPORTANTLY….. IF CHINA MOBILE, WITH 703.46 MILLION SUBSCRIBERS, DOESNT SOON STRIKE A DEAL TO SELL THE IPHONE 5 AND IPADS….THERE WILL BE A HUGE LOSS OF SUBSCRIBERS TO CHINA UNICOM AND CHINA TELECOM, BECAUSE THESE CHINESE PEOPLE ARE ALL GOING TO LOVE THESE AAPL PRODUCTS, AND THEY ARE NOT GOING TO WANT TO WAIT 6 MORE MONTHS TO BUY THEM. THEREFORE , CHINA MOBILE BETTER STRIKE A DEAL REAL SOON WITH APPLE OR RISK LOSING MILLIONS OF SUBSCRIBERS. THIS WILL BE A HUGE WIN FOR AAPL.
6.) FINALLY THE SMART PHONE INDUSTRY WILL GROW BY MILLIONS EACH YEAR FOR THE NEXT 4-5 YEARS , SO THERE IS ROOM FOR AAPL AND GOOG TO MAKE TONS OF MONEY

About Tech Trader Daily

Tech Trader Daily is a blog on technology investing written by Barron’s veteran Tiernan Ray. The blog provides news, analysis and original reporting on events important to investors in software, hardware, the Internet, telecommunications and related fields. Comments and tips can be sent to: techtraderdaily@barrons.com.